budget. c. unaffordable combination of sodas and DVDs. d. affordable combination of sodas and DVDs but whether it spends the entire budget cannot be determined from the figure. e. None of the above answers is correct. 5. If the price of a good that a consumer purchases falls‚ the consumer’s budget line will a. rotate outward and its slope will change. b. rotate inward and its slope will change. c. shift outward and its slope will not change. d. shift inward and its slope will not change. e. either rotate
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there is an expansion in demand and when less is consumed due to an increase in price‚ it is said to be a contraction in demand. A shift in the demand curve: Factors which do cause a shift in demand include: consumer tastes‚ fashion and trends‚ income‚ population‚ income distribution‚ consumer expectations and technology. When there is a change in any one of these determinants of demand there will be an alteration in the demand curve. Since these changes are not a cause of changes in price‚ there
Free Economics Consumer theory Supply and demand
respective prices. After all‚ if goods are perfect substitutes‚ then the consumer is indifferent between them‚ and will have no problem adjusting consumption to get the good with the lowest price. 1.1 The basic case (1:1) For 1:1 perfect substitutes‚ the situation is about as plain as can be. Say p1 > p2 . The consumer will spend all their income on good 2. How do we know without doing any of that fancy math stuff? If the consumer is just as happy with a unit of good 1 as they are with a unit of
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Mark Total Estimated time a candidate is expected to take to answer 60 minutes 36 minutes 50 minutes 15 minutes Duration – 3 hrs. Very short answer questions 10 2. Weightage by content Unit No 1 2 3 4 6 7 8 9 10 Unit Sub-Units Introduction Consumer Equilibrium and Demand Producer Behaviour and Supply Forms of Market and Price determination National income and related aggregates Money and Banking Determination of Income and employment Government Budget and the economy Balance of Payment Total
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Consumer Preferences Consumer preferences are varied and are more regionally specific. India is divided into four regions: North‚ East‚ West‚ and South. • Consumers in the North prefer pink colored soaps‚ which have floral profiles. Here the fragrance preference is for more sophisticated profiles reflecting their lifestyles. Freshness soaps with lime and citrus notes are also popular preferences as the climate in the North is very hot and citrus/lime scented soaps are seen to be refreshing.
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Fundamentals of Microeconomics In the world today product and services are both key to the survival of mankind. Depending on the demand from consumers‚ companies will see an increase or decrease of the items they produce or the service rendered. In the article of trends in US gasoline and ethanol use and petroleum production and imports these items will be looked at; as well as a discussion of the fundamentals of microeconomics. First‚ in order to understand what the fundamentals of microeconomics
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Laws of Supply and Demand Derrick Laron Gibson ECO/365 August 7‚ 2014 University of Phoenix Laws of Supply and Demand Your author has been given the responsibility of completing the demand and supply simulation and then discussing his thoughts on several questions presented before him. These questions deal heavily on microeconomics and macroeconomics with regards to managing approximately 3000 two bedroom apartments and their rentals. Your author will now address the questions as they were
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challenges which affect Target in Singapore Demographics: Singapore has small population and the aging problem become serious. Target’s scope of consumers concentrated on young and middle-aged people while Target’s consumers overall income level is slightly higher than Wal-mart’s level of consumer groups. So relative to the U.S.‚ the number of consumer groups is lower than the United States‚ Target is not conducive to open up new markets in Singapore. Physical infrastructure: Physical infrastructure
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Supply Models ECO/372 Aggregate Demand and Supply Models The following report will detail out the current state of the U.S. Economy. The report will discuss the following: * Current economic state in regards to unemployment‚ expectations‚ consumer income and interest rates * The existing effect of the economic factors on aggregate demand and supply * Fiscal policies that are currently being recommended by government leadership * The effectiveness of those fiscal policy recommendations
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satisfaction to the consumer is: Answer | | the maximum bundle. | | | the equilibrium consumption bundle. | | | the allowable purchasing bundle. | | | the most popular bundle. | Given that income is $500 and PX = $20 and PY = $5‚ what is the market rate of substitution between goods X and Y? Answer | | 100. | | | 4. | | | -20. | | | 25. | The budget set defines the combinations of good X and Y that Answer | | are desirable to the consumer. | | | are
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